Kvaerner results up, dividend proposed
12 February 2020 – Kvaerner’s results forKvaerner results up, dividend proposed the fourth quarter and for the full year 2019 ended at planned levels. Operating revenues for the last
quarter were NOK 2 789 million for the Field Development segment, where also revenues from joint ventures are included. This is an increase of 58 percent from the fourth quarter 2018, when revenues
were NOK 1 755 million. In the last period EBITDA was NOK 105 million, an increase of 40 percent compared to EBITDA one year before of NOK 75 million. The Board of Directors
propose to pay a dividend of NOK 0.50 per share, equal to about 55 percent of net profit in 2019, and has updated the dividend policy.
2019 was characterised by completion of important projects such as the Johan Sverdrup Utility and Living Quarter Platform for Phase 1 and the normally unmanned platform for Valhall Flank West, as well as new contract awards. In the third quarter, Kvaerner announced a new organisation with three operational areas: Process & Structures, FPSOs and Renewables. Shortly after, the first renewables contract was announced, 11 floating concrete hulls for the wind turbines for the Hywind Tampen project.
We are pleased that the results are according to plan for 2019. We delivered several important projects last year, enabling our customers to start using the facilities on schedule or ahead of schedule. We commence this year with a high activity level in our yards, and the order book also includes important new orders won in 2019. In parallel, we are also pursuing opportunities for several important contracts that we see in our target markets.
For the full year 2019, the operating revenues for the Field Development segment increased by 30 percent to NOK 9 427 million, compared to NOK 7 253 million in 2018. The corresponding EBITDA was NOK 512 million for 2019, versus NOK 487 million in 2018.
The total order intake in 2019 was NOK 6 902 million versus NOK 9 827 million in 2018. The order backlog was NOK 8 200 million at the end of 2019, while it was NOK 10 625 million at the end of 2018. The company has NOK 2 324 million in cash and bank deposits, and zero net debt.
It is expected that annual revenues and EBITDA will decline in 2020 compared to 2019, as an effect of the market cycle with few new orders in 2018 and 2019. During 2020, 2021 and beyond, it is expected that customers will award key contracts. Kvaerner’s strategy is to use these market opportunities to develop and grow the operations and results over the coming years.